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THE SECOND WIND 2014 Annual Agency Survey Report PRINCIPALS’ EDITION

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Page 1: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

THE SECOND WIND

2014 Annual Agency Survey Report

PRINCIPALS’ EDITION

Page 2: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

22014 ANNUAL SURVEY

LETTER FR

OM

SECO

ND

WIN

D

November 26, 2014

Dear Second Wind Member,

Following are the results of Second Wind’s 2014 Annual Agency Survey.

This survey allows you to compare your data with the average data of other Second Wind members. The most complete survey of smaller to midsize agencies that exists today, this is one of the reasons your Second Wind mem-bership is so valuable. The survey is a wonderful agency management tool, pinpointing areas where your operation is strong, and where it may need improvement. In the past, some of our members have put this data into spreadsheets, aligned these results with their own numbers, and developed this information into useful analytical tools.

Remember, different isn’t necessarily bad. If your data is not in line with the average member’s, you are not necessarily doing things all wrong. If you have concerns that you would like to discuss, feel free to call us.

We received 130 responses to this year’s survey questionnaire—approxi-mately 20% of the total Second Wind membership. We thank all of you who responded for providing their data. To those who did not respond—but who clamor for the results (you know who you are)—we look forward to your par-ticipation in the 2015 Annual Agency Survey.

I hope this survey report contributes to greater profitability for you in 2015. If you have any questions regarding this information, please call us at 610-374-9093 or email: [email protected]. We will do our best to clarify any issue.

Very truly yours,

Tony Mikes Managing Director

Page 3: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

32014 ANNUAL SURVEY

Table of Contents

TAB

LE OF C

ON

TENTS

Financials ................................................................... 4

Payroll and Employee Benefits ................................9

Accounting/Operations .........................................19

Planning/New Business ...........................................25

Technology/Software .............................................29

Digital Services.........................................................32

Agency Principal Information ................................35

Detailed Salaries and Hourly Rates .......................39

Page 4: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

4

FINA

NC

IALS

2014 ANNUAL SURVEY

The financial data reported in Second Wind’s 2014 Annual Agency Survey shows significant improvement for agen-cies from 2012 to 2013. Average total billings increased from $5,618,332 to $6,700,023, affirming that business is growing for smaller to midsize agencies.

Several billings areas increased, with creative services growing dramatically from $985,338 to $1,218,141, and account service growing from $542,384 to $646,812. Both of these functions are primarily time based, demonstrating that agencies are focused on capturing every hour they can.

The majority of other billing categories remained stable with online media holding strong at $508,683, account planning at $287,273 and digital/internet related billings at $406,129.

Total direct costs were up slightly in terms of dollars reported at $3,538,780. This represents 52.8% of billings, a slight decrease from last year (55.5% of billings).

Margins rose in many cases compared to last year’s survey. Traditional and online media both increased slightly; tradi-tional media increased from 10.2% to 12.4% and online media increased from 9.7% to 9.8%. Additionally, creative services increased from 80.7% to 84.3% and account service increased from 88.2% to 91.3%.

Total AGI showed a nice increase, rising from $2,500,794 to $3,161,243 and capitalized billings were reported at $21,085,491, a significant increase from $16,680,296.

Overall, total business expenses rose in terms of dollars ($2,445,974) but decreased as a percentage of AGI, which is good news for agencies. The biggest expense (and perhaps

Financial Summary

$6,700,023Average total billings

$3,161,243Average AGI

Page 5: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

5

FINA

NC

IALS

2014 ANNUAL SURVEY

your best investment if you have a productive team), is pay-roll. Salaries rose again this year, reported at $1,576,911 versus $1,234,507. Since economic times are improving, this may be attributed to increases in staff and overall wages. Payroll is re-ported as 49.9% of AGI—right on target with our recommenda-tion of 50-55% of AGI.

After payroll, the biggest agency expense (6.2% of AGI) is pay-roll taxes, with an average of $195,501 spent annually. Building mortgage/rent and employee insurance also account for a large portion of expenses, with agencies dedicating $118,855 and $92,612 respectively. Both of these expenses are up slightly from last year but have decreased as a percentage of AGI.

Most other agency expenses were similar to last year’s num-bers, with marginal increases or decreases in all areas.

The remainder of the statement looks good, with net income increasing from $493,027 to $715,269. Interest earned by agen-cies rose slightly from $3,260 to $6,222 and discounts earned increased from $13,834 to $21,212. Regarding other expenses, finance charges increased from $2,650 to $12,069, and penal-ties decreased significantly from $14,850 to $2,855.

Under additional compensation, employee bonuses increased from $75,782 to $93,140, and profit-sharing contributions in-creased from $50,071 to $67,410. Owner/partner bonuses decreased slightly from $98,426 to $86,540. The more positive business climate means more principals may have returned their salaries to normal levels, decreasing end-of-year bonuses to offset salary cuts taken during rocky economic times.

Overall, responding agencies ended the year in a good posi-tion, with an average net profit (before taxes) of $469,550, ac-counting for 14.9% of AGI.

Our business continues to move in a positive direction. Keep up the good work, everyone!

$715,269Average net income

$469,550Average net profit

Page 6: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

6

FINA

NC

IALS

2014 ANNUAL SURVEY

2013 M

EAN

/AVER

AG

E U

S DO

LLAR

S ($)

2013 PER

CEN

T O

F BILLING

S

2013 PER

CEN

T OF

DIR

ECT C

OSTS

2013 M

AR

GIN

BILLIN

GS

Trad

ition

al M

ed

ia1

,98

9,5

18

29

.7%

On

line

Me

dia

50

8,6

83

7.6

%

Cre

ativ

e1

,21

8,1

41

18

.2%

Ac

co

un

t Serv

ice

64

6,8

12

9.7

%

Ac

co

un

t Pla

nn

ing

/Strate

gy/R

ese

arc

h2

87

,27

34

.3%

Dig

ital &

Inte

rne

t-rela

ted

40

6,1

29

6.1

%

Prin

ting

29

3,2

16

4.4

%

Ph

oto

gra

ph

y6

1,2

39

0.9

%

Trav

el &

Ente

rtain

me

nt

44

,03

90

.7%

Pu

blic

Re

latio

ns

30

1,9

05

4.5

%

Oth

er O

utsid

e P

urc

ha

ses

35

4,7

71

5.3

%

Misc

ella

ne

ou

s5

88

,29

78

.8%

TOTA

L BILLIN

GS

6,7

00

,02

31

00

%

DIR

ECT C

OSTS

Trad

ition

al M

ed

ia1

,74

2,9

03

26

.0%

49

.3%

12

.4%

On

line

Me

dia

45

8,8

63

6.8

%1

3.0

%9

.8%

Cre

ativ

e1

91

,39

52

.9%

5.4

%8

4.3

%

Ac

co

un

t Serv

ice

56

,30

40

.8%

1.6

%9

1.3

%

Ac

co

un

t Pla

nn

ing

/Strate

gy/R

ese

arc

h6

4.3

64

1.0

%1

.8%

77

.6%

Dig

ital &

Inte

rne

t-rela

ted

98

,10

61

.5%

2.8

%7

5.8

%

Prin

ting

21

4,9

29

3.2

%6

.1%

26

.7%

Ph

oto

gra

ph

y3

8,4

24

0.6

%1

.1%

37

.3%

Trav

el &

Ente

rtain

me

nt

35

,26

70

.5%

1.0

%1

9.9

%

Pu

blic

Re

latio

ns

39

,09

70

.6%

1.1

%8

7.0

%

Oth

er O

utsid

e P

urc

ha

ses

21

6,9

57

3.2

%6

.1%

38

.8%

Misc

ella

ne

ou

s3

82

,17

15

.7%

10

.8%

35

.0%

TOTA

L DIR

ECT C

OSTS

3,5

38

,78

05

2.8

%1

00

%

TOTA

L AG

I (adjusted gross incom

e)3

,16

1,2

43

47

.2%

AG

I = TOTA

L BILLIN

GS m

inus TOTA

L DIR

EC

T C

OST

S

CA

PITA

LIZED B

ILLING

S21,085,491

CA

PITA

LIZE

D B

ILLING

S = AG

I times 6

.67

2012 M

EAN

/AVER

AG

E U

S DO

LLAR

S ($)

2012 PER

CEN

T O

F BILLING

S

2012 PER

CEN

T OF

DIR

ECT C

OSTS

2012 M

AR

GIN

1,6

84

,64

43

0.0

%

50

5,9

61

9.0

%

98

5,3

38

17

.5%

54

2,3

84

9.7

%

24

5,1

71

4.4

%

42

3,2

52

7.5

%

24

8,8

79

4.4

%

40

,12

70

.7%

34

,88

60

.6%

29

1,3

27

5.2

%

30

9,2

00

5.5

%

30

7,1

63

5.5

%

5,6

18

,33

210

0%

1,5

12

,63

02

6.9

%4

8.5

%1

0.2

%

45

6,7

43

8.1

%1

4.7

%9

.7%

19

0,0

43

3.4

%6

.1%

80

.7%

64

,25

61

.1%

2.1

%8

8.2

%

66

,12

31

.2%

2.1

%7

3.0

%

11

7,4

09

2.1

%3

.8%

72

.3%

19

7,9

01

3.5

%6

.3%

20

.5%

28

,74

30

.5%

0.9

%2

8.4

%

29

,56

70

.5%

0.9

%1

5.2

%

56

,50

91

.0%

1.8

%8

0.6

%

22

6,3

66

4.0

%7

.3%

26

.8%

17

1,2

48

3.0

%5

.5%

44

.2%

3,1

17

,53

85

5.5

%1

00

%

2,5

00

,79

44

4.5

%

16,680,296

FINA

NC

IAL D

ATA

: BILLIN

GS

Page 7: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

7

FINA

NC

IALS

2014 ANNUAL SURVEY

2013 M

EAN

/AVER

AG

E U

S DO

LLAR

S ($)

2013 PER

CEN

T O

F AG

I

SALA

RIES

Ow

ne

r/Pa

rtne

r3

56

,95

61

1.3

%

Emp

loye

e1

,21

9,9

55

38

.6%

TOTA

L SALA

RIES

1,576,91149.9%

BU

SINESS EX

PEN

SES

Pa

yroll Ta

xes

195,5016

.2%

Emp

loye

e In

sura

nc

e9

2,6

12

2.9

%

Emp

loye

e Ed

uc

atio

n/Tu

ition

Re

imb

urse

me

nt

8,9

38

0.3

%

Emp

loye

e A

ctiv

ities

13

,57

30

.4%

Bu

ildin

g R

en

t/Mo

rtga

ge

11

8,8

55

3.8

%

Bu

ildin

g M

ain

ten

an

ce

an

d R

ep

airs

11

,76

00

.4%

No

n-B

illab

le Tra

ve

l & En

terta

inm

en

t3

0,2

52

1.0

%

Au

to M

ain

ten

an

ce

8,7

03

0.3

%

Au

to Le

ase

s1

4,2

84

0.5

%

Equ

ipm

en

t Lea

ses

13

,92

60

.4%

Equ

ipm

en

t Ma

inte

na

nc

e/R

ep

airs

10

,01

80

.3%

Co

mp

ute

r Ha

rdw

are

/Pe

riph

era

ls/Softw

are

19

,95

10

.6%

Inte

rne

t Serv

ice

/We

b H

ostin

g9

,24

20

.3%

Tele

ph

on

e1

9,3

61

0.6

%

Utilitie

s1

3,4

19

0.4

%

Co

pie

s/Fax/Fe

dEx

3,3

40

0.1

%

Po

stag

e7

,71

70

.2%

Art/O

ffice

Sup

plie

s1

9,0

29

0.6

%

Pro

fessio

na

l Serv

ice

s4

4,6

28

1.4

%

Self P

rom

otio

n-P

R2

6,0

21

0.8

%

Bu

sine

ss Insu

ran

ce

13

,03

90

.4%

Pro

fessio

na

l Liab

ility Insu

ran

ce

7,8

52

0.2

%

Du

es a

nd

Sub

scrip

tion

s2

4,6

20

0.8

%

De

pre

cia

tion

47

,85

71

.5%

Misc

ella

ne

ou

s9

4,5

65

3.0

%

TOTA

L BU

SINESS EX

PEN

SES869,063

27.5%

TOTA

L OP

ERA

TING

EXP

ENSES

2,445,97477.4%

Total agency salaries plus total business expenses

2012 M

EAN

/AVER

AG

E U

S DO

LLAR

S ($)

2012 PER

CEN

T O

F AG

I

23

1,5

32

9.3

%

1,0

02

,97

54

0.1

%

1,234,50749.4%

10

8,2

57

4.3

%

90

,23

73

.6%

8,2

66

0.3

%

11

,12

40

.4%

12

2,5

42

4.9

%

12

,19

80

.5%

32

,24

71

.3%

9,2

22

0.4

%

15

,69

70

.6%

12

,85

40

.5%

9,9

43

0.4

%

18

,24

70

.7%

7,8

19

0.3

%

19

,64

70

.8%

12

,32

50

.5%

3,1

13

0.1

%

4,0

11

0.2

%

18

,21

30

.7%

38

,93

51

.6%

26

,81

61

.1%

12

,62

30

.5%

5,9

35

0.2

%

23

,18

60

.9%

52

,32

52

.1%

97

,47

83

.9%

773,26030.9%

2,007,76780.3%

FINA

NC

IAL D

ATA

: SALA

RIES &

EXP

ENSES

Page 8: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

82014 ANNUAL SURVEY

FINA

NC

IALS

FINA

NC

IAL D

ATA

: INC

OM

E, CO

MP

ENSA

TION

& N

ET PR

OFIT

2013 M

EAN

/AVER

AG

E U

S DO

LLAR

S ($)

2013 PER

CEN

T O

F AG

I

INC

OM

E

NET O

PER

ATIN

G IN

CO

ME

715,26922.6%

AG

I minus TO

TAL O

PE

RA

TIN

G E

XP

EN

SES

OTH

ER IN

CO

ME

Inte

rest Ea

rne

d6

,22

20

.2%

Disc

ou

nts Ea

rne

d2

1,2

12

0.7

%

TOTA

L OTH

ER IN

CO

ME

27,4340.9%

OTH

ER EX

PEN

SES

Inte

rest P

aid

11

,13

90

.4%

Fina

nc

e C

ha

rge

s1

2,0

69

0.4

%

Pe

na

lties

2,8

55

0.1

%

TOTA

L OTH

ER EX

PEN

SES26,063

0.8%

AD

DITIO

NA

L CO

MP

ENSA

TION

Tota

l Emp

loye

e B

on

use

s9

3,1

40

2.9

%

Tota

l Ow

ne

r/Pa

rtne

r Bo

nu

ses

86

,54

02

.7%

Tota

l Pro

fit-Sha

ring

Co

ntrib

utio

n6

7,4

10

2.1

%

TOTA

L AD

DITIO

NA

L CO

MP

ENSA

TION

247,0907.8%

NET P

RO

FIT (OR

LOSS) B

EFOR

E TAX

ES469,550

14.9%

NE

T O

PE

RA

TIN

G IN

CO

ME

S plus OT

HE

R IN

CO

ME

minus O

TH

ER

EX

PE

NSE

S minus A

DD

ITIO

NA

L CO

MP

EN

SAT

ION

2012 M

EAN

/AVER

AG

E U

S DO

LLAR

S ($)

2012 PER

CEN

T O

F AG

I

493,02719.7%

3,2

60

0.1

%

13

,83

40

.6%

17,0940.7%

10

,14

50

.4%

2,6

50

0.1

%

14

,85

00

.6%

27,6451.1%

75

,78

23

.0%

98

,42

63

.9%

50

,07

12

.0%

224,2799.0%

258,19710.3%

Page 9: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

92014 ANNUAL SURVEY

PAY

RO

LL & EM

PLOY

EE BEN

EFITS

The typical responding agency has 18 employees and 2 own-ers/partners. In 2013, 43% of respondents increased staff, and 22% decreased staff. For those who intended to increase staff in 2014 (54%), primary areas included account service (73%), creative (54%), and interactive/digital (45%). Seventy-eight per-cent stated their primary reason for increasing staff in 2013 was to service new accounts.

Average base salaries (excluding bonuses) have improved slightly over last year’s levels, with the highest employee sala-ries being paid to Creative Directors ($108,231), Account Su-pervisors/Directors ($90,748) and Assistant Creative Directors ($85,439).

Thirty-two percent of responding agencies employ full-time New Business Developers, a decrease from 42% in the 2013 survey. Of those agencies, 63% pay those individuals on a salary-plus-commission basis. This is down slightly from last year when 68% paid salary-plus-commission. An additional 25% pay straight salary. Average New Business Developer compensation was $77,975, increasing from $69,375 last year.

The percentage of responding agencies using freelance or part-time employees increased slightly to 94%. There are many areas where agencies outsource, but web programming (63%), creative/design (56%), and copywriting (51%) remain the high-est ranking categories.

Many agencies are committed to outsourcing, with 25% out-sourcing regularly and 75% outsourcing as needed or by proj-ect. Ninety-four percent of agencies find freelancers via recom-mendation; and 17% use local temp or staffing firms.

of respondents increased staff in 2013

43%

Payroll & Employee Benefits Summary

Page 10: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

102014 ANNUAL SURVEY

PAY

RO

LL & EM

PLOY

EE BEN

EFITS

Seventy-nine percent of respondents provide job descriptions for their employees. Second Wind is a big proponent of job descriptions, as they help both employer and employee under-stand roles and expectations. Regular employee reviews also help to set expectations and outline goals for performance and achievement. Most responding agencies are already aware of the benefits of job descriptions and performance reviews: 89% conduct regular performance reviews, and 74% conduct them annually.

Policies and procedures manuals continue to be an important part of running and growing a successful agency, as 86% of responding agencies agree. This number has increased slightly over the years, which is a good thing for employees and em-ployers. The use of non-piracy contracts for employees and non-circumvention agreements for freelancers remains stable, with 67% using non-piracy contracts and 72% using freelancer non-circumvention agreements. We recommend that agen-cies use these agreements whenever possible. While instituting agreements with current employees/freelancers may be dif-ficult, agencies must take steps to protect their businesses—and intellectual capital—by ensuring that all new hires sign these.

The number of agencies paying employee bonuses increased in 2013, with 62% of agencies offering this benefit to employ-ees as compared to 58% in 2012. Agency participation rates increased, with average bonus amounts totaling $5,037 per employee; up from last year’s figure of $2,954. Forty-eight per-cent offered profit sharing, with decreased average employee contributions at 4%.

Agencies’ health insurance expense decreased slightly to an average of $71,119 per agency. Agencies also covered an average of 21 individuals on their polices. As health insurance continues to rise, it is not uncommon for employers to ask em-ployees to contribute to their premiums, and agencies are no exception to this rule. Of respondents, 29% cover 100% of em-ployee premiums, 19% pay 50% and 14% pay 80%.

Agency owners are typically a generous group even in tough times, as seen in the wide variety of benefits available to agen-cy employees. In addition to an average of 9 paid holidays, 38% offer two weeks vacation at time of hire (slightly less than last year’s figure of 41%); 17% offer two weeks after one year; 8% offer 5 personal days per year; and 22% offer personal days

of agencies offered employee bonuses

in 2013

62%

74%

of agencies facilitate performance reviews

annually

of agencies execute regular performance reviews

89%

2013 CALENDAR

Page 11: THE SECOND WIND 2014 Annual Agency Survey Report · 2017. 11. 20. · 4 FINANCIALS 2014 ANNUAL SURVEY The financial data reported in Second Wind’s 2014 Annual Agency Survey shows

112014 ANNUAL SURVEY

PAY

RO

LL & EM

PLOY

EE BEN

EFITS

as needed. Twenty-nine percent of agencies do not offer any personal days to employees. Additionally, 40% of agencies offer 5 sick days per year, with 13% offering them on an as needed basis. Fourteen percent of respondents do not offer any sick days. Forty-nine percent of agencies now roll vacation, sick and personal days into a paid-time-off package (PTO).

Agencies offer a variety of other benefits, including life insur-ance (71%); dental/vision coverage (82%); reimbursement for professional training (80%); 401K (84%); and leaves of absence (85%).

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122014 ANNUAL SURVEY

PAYROLL & EMPLOYEE BENEFITS DATA

1. Number of owners/partners at your agency: 2 Owners/partners

2. Number of people employed by your agency: 18 Employees

3. In 2013, your staff: 43% Increased

35% No change

22% Decreased

4. Plan to increase/decrease your staff in 2014: 54% Increase

39% No change

7% Decrease

In which departments do you plan to increase staff? 73% Account Service

54% Creative

45% Interactive/Digital

15% Financial/Administration

15% Traffic/Production

12% Public Relations

12% New Business

9% Planning

6% Media

5% Other

Your primary reason for increasing staff in 2014: 78% Service new accounts

9% Add new departments

0% Merger

14% Other

5. Employ a full-time New Business Developer: 32% yes

The New Business Developer is paid: 63% Salary plus commission

25% Straight salary

5% Straight commission

Your New Business Developer’s total

compensation in 2013 was: $77,975

6. You employ a full-time Traffic Manager 28% yes

A full-time Production Manager 44% yes

A full-time Project Manager 38% yes

PAY

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132014 ANNUAL SURVEY

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7. Your agency uses outsourced/freelance/ 94% yes

part-time employees:

Percentage of staff that fits this description: 12%

8. Job functions/areas in which you outsource: 63% Web Programming

56% Creative/Design

51% Copywriting

30% Digital Design

28% Production

29% Proofreading

19% Media Planning/Buying

18% Public Relations

14% Research

12% Bookkeeping

6% Other

9. You outsource: 25% Regularly

75% As needed/by project

0% Per client request

10. You find outsourced people: 94% By word of mouth/recommendation

17% Through local temp/staffing firms

12% Through national staffing firms

11. You have employees who telecommute: 42% yes

12. You provide job descriptions for all positions in your agency: 79% yes

13. Regularly review employee performance: 89% yes

How often? 74% Annually

19% Semi-annually

7% Other

14. Have an employee policies and procedures manual: 86% yes

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15. Use employee non-piracy contracts: 67% yes

Freelancer non-circumvention agreements: 72% yes

16. Of those paying bonuses in 2013 (62%),

the average amount paid: $5,037

17. Have a profit-sharing program: 48% yes

Average contribution per employee in 2013: 4%

18. Percentage of employees’ health care benefits you pay: 29% Pay 100%

14% Pay 80%

19% Pay 50%

0% Pay 25%

1% Pay less than 25%

6% Pay none

32% Other

19. Percentage of dependent’s health care benefits you pay: 7% Pay 100%

3% Pay 80%

11% Pay 50%

3% Pay 25%

0% Pay less than 25%

56% Pay none

19% Other

20. Average total health care benefits expense in 2013: $71,119

Average number of individuals covered: 21

21. Offer employees all-in-one PTO with personal

and sick days combined: 49% yes

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22. How employees become elligible for PTO: 46% They start to accrue days

based on hours worked each

pay period

15% They are offered a bank of

days after one year of service;

additional days based on

tenure

38% Other

23. Number of PTO days your full-time employees 24% 10 days

earn after one year of service: 34% 15 days

10% 20 days

0% 25 days

1% 26+ days

30% Other

24. If you do not offer PTO, your paid vacation policy is: 38% 2 weeks to start

17% 2 weeks after 1 year

12% 1 week to start

5% 1 week after 1 year

9% Do not offer

20% Other

25. Personal day policy: 8% 5 days

15% 2 days

10% 1 day

22% As needed

29% Do not offer

15% Other

26. Sick day policy: 12% 6 days

40% 5 days

5% 3 days

13% As needed

14% Do not offer

17% Other

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27. The average number of paid holidays: 9 days

28. Pay overtime to salaried employees: 2% yes

29. Offer compensatory time: 39% yes

30. Offer company-sponsored social functions: 92% Holiday party

87% Luncheons

48% Company picnic

32% Awards dinners

27% Other

31. What additional benefits do you offer?

LIfe insurance 71% yes

Disability insurance 70% yes

Dental/vision insurance 82% yes

Parking/commuting expenses 34% yes

On-premises snacks/drinks/lunchroom 86% yes

Paid professional training/education/tuition reimbursement 80% yes

Paid professional association dues 84% yes

Leaves of absence (maternity/paternity, compassionate, etc.) 85% yes

On-site child care 1% yes

Retirement plan/401(k) 84% yes

32. Other benefits/perks you offer:

•Birthdayoff • Cafeteriaplan

•Flex-time • Healthclubmembership

•SimpleIRA • Summerhours

•Weeklylunches • Wellnessprogram

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172014 ANNUAL SURVEY

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2014 NATIONAL AVERAGE SALARIES

Position Average

Account Supervisor/Director $90,748

Account Manager 73,524

Account Executive 55,303

Account Planner 77,125

Account Assistant 35,345

Creative Director 108,231

Assistant Creative Director 85,439

Digital Creative Director 82,088

Art Director 64,188

Senior Designer 61,825

Designer 48,484

Entry Level Designer 34,919

Production Artist 45,242

Senior Digital Designer 65,343

Digital Designer 52,709

Digital Production Artist 43,164

Senior Copywriter 71,638

Copywriter 54,688

Entry Level Copywriter 35,103

Production Manager 59,292

Traffic Manager 48,600

Project Manager 52,749

Controller/Business Manager 67,947

CEO 165,590

CFO 99,725

COO 129,305

Bookkeeper $44,808

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182014 ANNUAL SURVEY

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2014 NATIONAL AVERAGE SALARIES

Position Average

Receptionist $35,314

Media Director 73,406

Media Planner/Buyer 52,222

Digital Media Strategist 58,132

Public Relations Director 78,487

Public Relations Account Executive 53,075

Research Director 85,000

IT Manager 76,735

Web Developer/Programmer 62,185

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Fifty-nine percent of responding agencies are located in major cities or large cities with 500,000+ in population. Another 39% are located in small cities with 100,000-499,999 in population, and 2% are located in America’s small towns or rural areas.

The majority of respondents are S-corporations (59%) or C-cor-porations (25%); a smaller number (17%) operate as LLCs. When asked about their top areas of expertise, 47% focus on health care; 34% focus on education/non-profit; 32% on banking/fi-nancial; and 31% focus on industrial/marketing.

Average hourly rates by function remained stable in most areas. Notable rates include strategic planning, which currently brings in $154 per hour, and account planning and digital strategy at $140 per hour. Art direction bills an average of $137 per hour, with creative/design following closely at $136 per hour. Princi-pals are billing at an average of $181 per hour.

Seventy-two percent of respondents use a blended rate in their estimating process. Of those using a blended rate, the average was $134 per hour, a slight increase from $133 in 2013. Nineteen percent of respondents use different blended rates by function, with most agencies claiming to use special rates for account service, creative and PR.

Of survey participants, 79% are the Agency of Record for cli-ents, with 46% of clients holding this status. Eighty-four percent of agencies have signed contracts with Agency of Record cli-ents, which is increasingly important today. Gone are the days of conducting business via handshake. Contracts clarify the agency’s role, client expectations, artwork ownership, compen-sation and many other important issues. Second Wind recom-mends having signed contracts in place whenever possible.

of agencies use a blended rate in their estimating process

72%

is the average blended rate

$134 PER HOUR

Accounting/Operations Summary

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In the area of agency compensation, 95% of agencies are typi-cally compensated on a project basis, stable from 94% in 2013; 75% are compensated on retainer/fee-based terms; 70% on commission or markup; and 7% on incentive-based terms.

When asked how they bill, 57% of agencies stated they bill by the job, an 8% increase from last year. Thirty-four percent bill by a combination of account and job, and only 7% bill strictly by the account, with 2% saying their billing methods vary. If jobs are not completed at the end of the month, 36% send a monthly bill for the work completed, and 29% wait until the job is completed to send a final bill.

The average time to collect receivables remains longer than desirable, with 42% of agencies waiting 45 days for funds from their clients. This is down from 49% last year so collection times have improved a bit. Another 39% wait 30 days, which is what agencies should strive for. Thirteen percent wait 60 days, which is slightly higher than last year at 11%. When asked about a line of credit, 75% stated they currently have one.

Concerning media billing practices, 36% of respondents say they bill as soon as the insertion order is cut. Another 24% wait until the final media bill arrives, and 21% bill for media once or twice a month. Although it is not always practical, billing as soon as the insertion order is cut is the preferred practice.

Agencies are still receiving above-average markups on outside purchases. This year, agencies reported receiving markups of 19-35% across the board for printing, photography/illustration, freelance writing and other outside purchases. We know clients are increasingly challenging markups and commissions, but agencies should work hard to retain these forms of compensa-tion.

Finally, when producing estimates and invoices, 56% of agen-cies customize per client preference. Twenty percent break invoices down to show agency versus outside services—but do not show vendor invoices to clients, and 21% provide a one-line invoice to clients.

Agencies are still receiving above-average

markups across the board

35%

19%22%

FREELANCE WRITING

PHOTOGRAPHY/ILLUSTRATION

PRINTING

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ACCOUNTING/OPERATIONS DATA

1. Your agency is located in a: 36% Major city/metro area(pop. over 1,000,000)

23% Large city/metro area(pop. 500,000 to 999,999)

39% Small city/metro area(pop. 100,000 to 499,999)

2% Small town/rural area(pop. less than 100,000)

2. Your agency is a(n): 59% S-corporation

25% C-corporation

17% LLC

0% Sole proprietorship

3. Your agency’s top areas of expertise: 47% Healthcare

34% Education/Non-Profit

32% Banking/Financial

31% Industrial/Manufacturing

26% Retail

18% Food Services

13% Technology

11% Tourism/Hospitality

10% Automotive

9% Government

9% Real Estate

6% Agriculture

6% Telecom/Communications

23% Other

4. Use a blended rate: 72% yes

Your blended rate is: $134

5. Have a blended rate for different service categories: 19% yes

Categories for which you have blended rates: 79% Account Service

71% Creative

50% Public Relations

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222014 ANNUAL SURVEY

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2014 NATIONAL AVERAGE HOURLY BILLING RATES

Position Average

Principal $181

Account Service 133

Account Planning 140

Art Direction 137

Creative/Design 136

Digital Design 129

Copywriting 130

Production 120

Project Management 122

Estimating 116

Proofreading 104

Research 132

Strategic Planning 154

Media Planning/Buying 127

Public Relations 134

Digital Strategy 140

SEO/SEM Facilitation 125

Social Media Facilitation 121

Web Content Development 133

Digital Production 124

Website Programming 129

Administrative/Clerical 89

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ACCOUNTING/OPERATIONS DATA

6. Agency of Record for any clients: 79% yes

if yes, percentage that fits this description: 46%

Have a signed contract with those clients: 84% yes

7. Include an Ownership of Artwork clause in contracts

with vendors/clients: 75% yes

8. Are compensated on: 95% A project basis

75% Retainer/fee-based

70% Commission/markup

7% Incentive-based terms

3% Other

9. Have clients review agency services as a quality

control measure: 31% yes

10. Bill by: 57% Job

34% Combination

7% Account

2% Varies

11. If a job is not completed at the end of the month, you: 36% Send a bill every month forwork completed

29% Arrange to bill at set times before job begins

20% Bill when job is completed

15% Other

12. Average length of time to collect receivables: 2% 15 days

39% 30 days

42% 45 days

13% 60 days

4% 90 days

0% 120 days

13. Have a line of credit: 75% yes

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242014 ANNUAL SURVEY

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ACCOUNTING/OPERATIONS DATA

14. Typically bill clients for media: 36% As soon as the insertion order is cut

24% When the final media billarrives

21% Once/twice a month

15% Other

15. Have a Sequential Liability disclaimer on your

insertion orders: 57% yes

16. Your average agency markups on: 19% Printing

22% Photography/Illustration

35% Freelance writing

20% Other outside purchases

17. Your average commission on media buys: 11%

18. With regard to client estimates and invoices, 56% Customizes per client

your agency: preference

21% Provides one-line/all inclusive

20% Breaks estimates/invoices into

agency v. outside services,

without showing vendor invoices

1% Routinely shows vendor invoices to clients

1% Has vendors bill clients directly

19. Your agency: 34% Insists on controlling print

production

32% Transfers responsibility for final

product to client when agency

is cut out of production

18% Offers to advise clients on

correct supervision of print

production

16% Other

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252014 ANNUAL SURVEY

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According to this year’s survey, 76% of agencies develop an-nual business plans, up from 68% the year before. Seventy-four percent follow new business plans, a number that continues the upward trend of the past few years.

When asked how they identify new prospects, 96% of agencies state that they rely on referrals. Additionally, 83% rely on more business from current clients; 74% state their agency website is a good way to identify agency prospects; and 66% “keep their eyes peeled” for new opportunities.

Responding agencies averaged 16 new business pitches in 2013, a slight decrease from the previous year. Agencies suc-cessfully secured 6 new clients from these pitches —also a slight decrease from last year (8).

Few agencies (only 10%) set annual budgets for new business pitches, which decreased slightly from last year. For those who responded yes, the average annual budget was $21,750, signifi-cantly higher than last year’s budget of $14,633. In addition, we asked if agencies respond to RFPs —78% said they do.

Fifty-two percent of agencies use contact management soft-ware to manage their leads, up slightly from last year. It’s im-portant for agencies to use some type of system to manage their new business pipeline. This not only helps to keep the data organized but also supports a more efficient process.

When presenting their work, 75% of agencies use online portfo-lios. This number has remained stable in the last year—no sur-prise, since online portfolios are so easy to update and custom-ize at a moment’s notice. Less than half of agencies (40%) use traditional portfolios, while 59% use PowerPoint/Keynote and

new business pitches were made by agencies

in 2013

16

Planning/New Business Summary

agencies successfully secured 6 new clients

from these new pitches

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262014 ANNUAL SURVEY

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13% use DVDs. While portfolio formats may vary, 82% of respon-dents include results-based case studies—which is stable from last year.

Agencies continue to have an impressive track record for hold-ing onto accounts. The average length of the longest-held account is 16 years. Sixty-six percent of respondents stated that their AGI increased from 2012-2013, and fully 60% stated that more business from existing clients was the most important fac-tor in this increase. The data underscores that clients are spend-ing again, which is good news for agencies.

is the average length of the longest-held account

16 YEARS

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272014 ANNUAL SURVEY

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PLANNING NEW BUSINESS DATA

1. Develop a yearly agency business plan: 76% yes

2. Have a proactive new business plan: 74% yes

3. Methods used to identify new business prospects: 96% Referrals

83% More business from current clients

74% Agency website

66% KOEP (keeping our eyes peeled)

37% Persistent, 365-days-a-year effort

35% Cold calls

23% Direct mail

13% Traditional advertising

4. The primary way you acquire new business is: 56% Referrals

17% Persistent, 365-days-a-year effort

10% More business from current clients

4% Agency website

3% DIrect mail

3% Cold calls

1% KOEP (keeping our eyes peeled)

0% Traditional advertising

5. Approximate number of new business pitches

conducted in 2013: 16

Number of speculative pitches: 6

6. Number of pitches that gained new projects/accounts

for the agency: 6

7. Set an annual budget for new business pitches: 10% yes

The approximate annual budget is: $21,750

8. Respond to RFP’s: 78% yes

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282014 ANNUAL SURVEY

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PLANNING/NEW BUSINESS DATA

9. Use contact management software: 52% yes

•ACT •Outlook

•ConstantContact •NowContact

•FilemakerPro •Salesforce.com

•FunctionPoint •Workamajig

10. Present the agency’s portfolio via: 75% Online

59% PowerPoint/Keynote

40% Traditional

13% DVD

11. Include results-based case studies: 82% yes

12. Considering only client accounts held for at least one year,

number of years you have serviced your longest-held

account: 16 years

13. Your AGI increased from 2012 to 2013: 66% yes

You most attribute this increase to: 60% Increased business fromexisting clients

23% Intensive new business program

7% Expanded agency services

3% Overall improvement in theeconomy

8% Other

14. The greatest challenge facing your agency is:

•Increasingbillablehours • Keepingprocessesinplaceasagencygrows

•Newcompetition • Findingtherighttalent

•Beingfairlycompensatedbyclients • Keepingupwithindustrytrends

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292014 ANNUAL SURVEY

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NO

LOG

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FTWA

RETechnology/Software

SummaryTechnology remains at the forefront of agency life, a blessing or a curse. One thing is certain: agencies today could not func-tion without it.

Sixteen percent of respondents have full-time IT managers who address everyday technology issues. Many others (72%) con-tract with outside support providers, while another 18% rely on tech-savvy employees.

Electronic data policies are an important operations issue; 61% of respondents have these policies in place. Information is transferred in the blink of an eye these days, so it’s vital that employees understand the restrictions when using, transferring or sharing client and agency data. Proper use of social media is also top of mind, with 53% of agencies instituting parameters for all agency/client related social media issues.

Numerous industry-specific software systems are available to agencies, offering workflow, accounting, timekeeping, estimat-ing and CRM modules. When tackling estimating and traffic, 32% of respondents use Workamajig; 17% use Basecamp; 13% use Clients and Profits; 13% use Advantage; 11% use a manual system; and 6% use CurrentTrack.

For accounting functions, 34% use QuickBooks; 31% use Worka-majig; 13% use Advantage; 11% use Clients and Profits; and 4% use Control G. Finally, of those respondents who use software for media planning and buying, 38% use Strata; 16% use Smart-Plus; and 1% use Tapscan.

Many respondents (89%) use web-based applications to im-prove client communication, efficiency and functionality. Ninety-three percent use them for online meetings; 50% for cre-ative collaboration; 40% to help support telecommuting; 32% for CRM; and 30% for digital asset management.

of respondents have electronic data policies

in place

61%

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302014 ANNUAL SURVEY

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TECHNOLOGY/SOFTWARE DATA

1. Have a full-time IT manager: 16% yes

For those with no IT manager, you address internal IT issues by: 72% Contracting with outside provider

18% Relying on tech-savvy employees

4% Other

2. Agency has an electronic data or social media policy: 61% Electronic data policy

53% Social media policy

3. Systems/software currently used for traffic and estimating: 32% Workamajig

17% Basecamp

13% Clients and Profits

13% Advantage

11% Manual system

6% CurrentTrack

5% Function Point

4% Custom System

3% FunctionFox

2% Control G

2% TimeFox

1% Paprika

1% Silent Partner

11% Other

4. Systems/software used for accounting: 34% QuickBooks

31% Workamajig

13% Advantage

11% Clients and Profits

4% Control G

3% MYOB

3% Peachtree

1% Custom System

1% Silent Partner

1% Paprika

4% Other

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NO

LOG

Y/SO

FTWA

RE

5. Systems/software currently used for media planning/buying: 38% Strata

16% SmartPlus

1% Tapscan

1% Telmar

45% Other

6. Your agency uses web-based applications: 89% yes

Use web-based applications for: 93% Online meetings

50% Creative collaboration

40% Support telecommuting

32% CRM

30% Digital asset management

8% Other

7. Type of digital asset management system(s) you use: 89% Hard drive/server storage

46% Online storage

23% CD archive library

5% Other

8. Promote your agency website with: 95% Social media

75% Blogs

71% SEO/SEM

61% Email marketing

8% Banner ads

7% Other

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322014 ANNUAL SURVEY

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More than half of agencies (69%) have dedicated interactive/digital groups, with 34% stating this group is distinct from the rest of the agency. Staffing for these groups is typically low, but has been increasing over the years: 41% have 1-2 dedicated employ-ees, 41% have 3-4 employees, and 15% have 5-10 employees.

Agencies continue to offer a wide range of services, including website development (95%); email marketing (89%); banner ad creation (87%); and website management (85%). An additional 83% offer social media and 75% offer SEO/SEM.

Compensation methods for SEO/SEM vary. Agencies being paid on an hourly basis (28%) remained stable from last year’s survey, while 24% are paid on retainers, and 38% are compen-sated through a combination of both methods.

Revenues and expectations for digital growth are also stable from last year, with agencies forecasting that 19% of their rev-enue will come from digital services in 2014.

When asked which online vehicles agencies create/manage for their clients, 95% stated Facebook; 73% said Twitter; 66% stated blogs and 61% said LinkedIn; showing an overall increase in the use of social media. Additionally, when asked which online vehicles they create and manage for themselves, 94% stated Facebook; 81% said Twitter; 78% stated LinkedIn and 71% said blogs.

Finally, most agencies (86%) are making an effort to quantify their digital media efforts using tracking and reporting services. Of these, 97% use Google Analytics, 9% use DoubleClick, 5% use Omniture and 11% use other tools. In addition, 60% are providing social media tracking and reporting to clients, with 49% using HootSuite Pro; 24% using Sprout Social; and 17% using Radian6.

of agencies have dedicated interactive

digital groups

69%

Digital Services Summary

1-2 employees

3-4 employees

5-10 employees

11-15 employees

41%

3%

41%15%

Interactive groups have:

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DIGITAL SERVICES DATA

1. Your agency has an interactive/digital group: 69% yes

If yes, this group is distinct from the rest of the agency: 34% yes

2. Number of full-time staff assigned to this group: 41% 1-2

41% 3-4

15% 5-10

3% 11-15

0% More than 15

3. The following services are offered by your 95% Website development

interactive/digital group: 89% Email marketing

87% Banner ad creation

85% Website management

83% Social media

75% SEO/SEM

73% Blogs

73% Online video

67% Online media buying

41% App development

31% eBooks/Digital publications

24% SMS/MMS

18% Viral marketing

18% Podcasting/vodcasting

7% Other

4. Your compensation structure for SEO/SEM services: 28% Hourly

38% Combination

24% Retainer

9% Other

5. Your compensation structure for social media services: 32% Hourly

35% Combination

29% Retainer

4% Other

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6. In 2013, approximate total of your agency’s revenue

derived from interactive/digital projects: $683,447

Approximate percentage of your 2014 revenue that will

come from interactive digital: 19%

7. You create/manage the following online vehicles 95% Facebook page

for your clients: 73% Twitter accounts

66% Blogs

61% LinkedIn presence

20% Other

8. You create/manage these online vehicles for your agency: 94% Facebook page

81% Twitter accounts

71% Blogs

78% LinkedIn presence

19% Other

9. You offer digital media tracking and reporting services

to your clients: 86% yes

Services offered: 97% Google Analytics

9% DoubleClick

5% Omniture

11% Other

10. You offer social media tracking and reporting

services to your clients: 60% yes

Services offered: 49% HootSuite Pro

24% Sprout Social

17% Radian6

3% Viralheat

32% Other

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According to this year’s survey, the average principal has been at his/her current agency for 21 years, and in the advertising business for 27 years.

Principals participate in a wide variety of activities, but the top function they perform is financial (26%). Twenty-five percent participate in account service as a primary responsibility, with 22% focusing on new business, and 13% on strategy.

As most will admit, it’s often difficult for agency principals to take time off to enjoy a vacation. Fortunately, 86% managed to take a vacation this year. The majority of agency principals are college educated; 73% have college degrees and another 17% have graduate degrees.

The average age of responding principals is 52. Many principals have family members working in the business; 49% work with their children; 46% work with their spouses and 23% work with other relatives. Working with family can be challenging at times but the rewards can be enormous. It’s great to see so many agencies run as family businesses.

When asked if they are happy in the agency business, 98% state that they are. Forty-two percent said they chose advertis-ing as their field/career, and another 34% stated they began working in the business purely by chance. Transitions from client to agency side are also common, with 7% stating they used to work on the client side of the business.

Twenty-nine percent of Second Wind agencies own their office space, which is stable with last year. Sixty-one percent rent their space and 9% own their buildings and serve as landlords to others.

of respondents said they are happy in the

agency business

is the average time agency principals have

been at their current agencies

21 YEARS

Agency Principal Information Summary

98%

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Most agency principals keep up with industry news by reading trade publications; 59% actively read AdAge; 56% read Ad-week; 26% read Communication Arts; 21% read FastCompany; 15% read Businessweek; 11% read Wired; and 11% read Forbes.

Many agency principals participate in industry organizations and associations in addition to Second Wind; 65% participate in their local Chambers of Commerce; 52% belong to local ad clubs; 32% belong to AAF; and 27% belong to AMA.

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AGENCY PRINCIPAL DATA

1. You have been at your present agency an average of: 21 years

2. You have been in the advertising agency business an 27 years

average of:

3. Your average age is: 52 years

4. Your primary daily responsibility in the agency other than 26% Financial

general management is: 25% Account service

22% New business

13% Strategy

4% Creative

1% Media

9% Other

5. You last took a vacation: 86% This year

8% Last year

4% Two or more years ago

2% Never

6. Your highest completed level of education is: 73% College

17% Graduate school

10% High school

7. You are: 86% Married

9% Divorced

5% Single

8. Members of your immediate family working with you in 49% Children

the agency: 46% Spouse

23% Other relative

9. You are happy in the agency business: 98% yes

10. How you came to be in the advertising/marketing business: 42% Selected as career

34% Purely by chance

12% Family business

7% Formerly on client side

5% Other

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11. At the agency’s present location, you: 61% Rent the space

29% Own the space

9% Own a building and serve as

landlord to other businesses

1% Work at home

12. Trade publications you read most often are: 59% AdAge

56% Adweek

15% Businessweek

26% Communication Arts

4% Entrepreneur

21% FastCompany

11% Forbes

10% Fortune

1% Graphic Design USA

8% HOW

14% INC

6% Print

11% Wired

32% Other

13. Which industry websites or blogs do you visit/read most often?

•AdAge • B2Bonline

•FastCompany • HarvardBusinessReview

•Mashable • MediaPost

•Ragan • SethGodin

14. Professional design/advertising/business associations to 10% 4A’s

which you belong: 32% AAF

11% AIGA

27% AMA

13% BMA

65% Chamber of Commerce

1% DMA

1% EMMA

52% Local Ad Club

1% Local Art Directors Club

36% Other

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Detailed Salaries and Hourly RatesThe following pages provide a more detailed view of the sal-ary and hourly rate data collected through the annual survey process. In addition to a comparison of 2014 and 2013 national salaries and hourly rates, we provide data by market size and size of agency.

We hope the detailed breakdown will allow you to pinpoint data that is relevant to your agency’s specific size and location.

While we make every attempt to gather data on as many agency positions as possible, some titles may not appear every year due to varying sample sizes.

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2014 NATIONAL AVERAGE SALARIES

Position Average Average High Average Low

Account Supervisor/Director $90,748 $118,943 $62,553

Account Manager 73,524 112,458 34,590

Account Executive 55,303 73,900 36,707

Account Planner 77,125 110,919 43,331

Account Assistant 35,345 42,290 28,399

Creative Director 108,231 160,087 56,375

Assistant Creative Director 85,439 107,254 63,624

Digital Creative Director 82,088 104,940 59,237

Art Director 64,188 85,324 43,052

Senior Designer 61,825 73,305 50,344

Designer 48,484 57,614 39,354

Entry Level Designer 34,919 40,836 29,002

Production Artist 45,242 52,577 37,908

Senior Digital Designer 65,343 80,273 50,412

Digital Designer 52,709 64,821 40,596

Digital Production Artist 43,164 49,661 36,666

Senior Copywriter 71,638 85,165 58,110

Copywriter 54,688 71,179 38,197

Entry Level Copywriter 35,103 41,880 28,326

Production Manager 59,292 82,676 35,907

Traffic Manager 48,600 63,748 33,451

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2014 NATIONAL AVERAGE SALARIES

Position Average Average High Average Low

Project Manager $52,749 $66,078 $39,421

Controller/Business Manager 67,947 86,522 49,372

CEO 165,590 247,513 83,667

CFO 99,725 135,464 63,986

COO 129,305 180,789 77,820

Bookkeeper 44,808 69,725 19,892

Receptionist 35,314 44,058 26,571

Media Director 73,406 105,843 40,968

Media Planner/Buyer 52,222 77,240 27,205

Digital Media Strategist 58,132 82,766 33,499

Public Relations Director 78,487 104,053 52,921

Public Relations Account Executive 53,075 67,375 38,775

Research Director 85,000 115,424 54,576

IT Manager 76,735 104,311 49,159

Web Developer/Programmer 62,185 79,298 45,072

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2013 NATIONAL AVERAGE SALARIES

Position Average Average High Average Low

Account Supervisor/Director $95,336 $125,232 $65,440

Account Manager 69,530 84,777 54,284

Account Executive 51,486 63,441 39,531

Account Planner 68,136 90,111 46,161

Account Assistant 32,205 40,870 23,539

Creative Director 94,375 134,559 54,191

Assistant Creative Director 77,810 98,786 56,834

Digital Creative Director 87,429 113,607 61,251

Art Director 58,290 75,982 40,599

Senior Designer 58,305 71,422 45,189

Designer 44,950 53,462 36,438

Entry Level Designer 33,836 39,591 28,081

Production Artist 44,486 57,114 31,858

Senior Digital Designer 65,673 81,079 50,268

Digital Designer 49,504 55,902 43,105

Digital Production Artist 49,200 57,055 41,345

Senior Copywriter 65,199 82,619 47,779

Copywriter 48,949 61,394 36,504

Entry Level Copywriter 31,168 37,118 25,219

Production Manager 58,502 78,721 38,283

Traffic Manager 45,856 57,534 34,177

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2013 NATIONAL AVERAGE SALARIES

Position Average Average High Average Low

Project Manager $51,455 $72,983 $29,928

Controller/Business Manager 72,909 94,907 50,911

Bookkeeper 40,345 53,320 27,370

Human Resources Manager 55,800 70,558 41,042

Receptionist 34,405 40,847 27,964

Media Director 73,620 103,832 43,408

Media Planner/Buyer 47,069 59,925 34,213

Digital Media Strategist 80,321 120,635 40,007

Public Relations Director 80,186 102,707 57,665

Public Relations Account Executive 47,221 57,539 36,903

Research Director 75,278 105,857 44,699

Research Assistant 38,710 58,245 19,175

IT Manager 68,627 90,052 47,202

Web Developer/Programmer 54,913 71,218 38,607

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2014 NATIONAL AVERAGE SALARIES BY MARKET SIZE*

Position All Markets Small Town/ Small City

Large City/ Major City

Account Supervisor/Director $90,748 $90,954 $89,974

Account Manager 73,524 69,333 76,878

Account Executive 55,303 58,830 51,716

Account Planner 77,125 80,688 70,000

Account Assistant 35,345 34,826 35,628

Creative Director 108,231 93,271 107,546

Assistant Creative Director 85,439 84,671 85,900

Digital Creative Director 82,088 75,849 85,000

Art Director 64,188 59,117 68,794

Senior Designer 61,825 60,574 63,677

Designer 48,484 47,074 49,100

Entry Level Designer 34,919 33,080 36,990

Production Artist 45,242 42,842 47,181

Senior Digital Designer 65,343 62,563 66,412

Digital Designer 52,709 52,307 52,950

Digital Production Artist 43,164 41,250 44,257

Senior Copywriter 71,638 66,734 74,825

Copywriter 54,688 52,058 56,567

Entry Level Copywriter 35,103 30,858 37,650

Production Manager 59,292 51,767 69,044

Traffic Manager 48,600 48,281 48,823

*Small Town/Small City (less than 500,000 area population) Large City/Major City (500,000+ area population)

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2014 NATIONAL AVERAGE SALARIES BY MARKET SIZE*

Position All Markets Small Town/ Small City

Large City/ Major City

Project Manager $52,749 $51,782 $53,281

Controller/Business Manager 67,947 65,623 70,468

CEO 165,590 190,483 153,144

CFO 99,725 102,500 98,536

COO 129,305 112,667 135,960

Bookkeeper 44,808 35,917 51,160

Receptionist 35,314 31,893 37,722

Media Director 73,406 60,338 80,880

Media Planner/Buyer 52,222 53,071 52,580

Digital Media Strategist 58,132 61,069 56,600

Public Relations Director 78,487 66,680 87,569

Public Relations Account Executive 53,075 54,063 52,417

Research Director 85,000 71,750 111,500

IT Manager 76,735 61,667 79,964

Web Developer/Programmer 62,185 55,876 66,319

*Small Town/Small City (less than 500,000 area population) Large City/Major City (500,000+ area population)

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2014 NATIONAL AVERAGE SALARIES BY AGENCY SIZE

Position All Agencies

< $3 Million in Billings

$3+ Million in Billings

Account Supervisor/Director $90,748 $79,944 $95,699

Account Manager 73,524 62,703 78,467

Account Executive 55,303 50,595 57,709

Account Planner 77,125 43,167 88,444

Account Assistant 35,345 32,047 36,319

Creative Director 108,231 98,664 115,773

Assistant Creative Director 85,439 68,113 87,914

Digital Creative Director 82,088 63,189 87,500

Art Director 64,188 65,604 63,622

Senior Designer 61,825 53,695 65,440

Designer 48,484 46,056 49,840

Entry Level Designer 34,919 35,700 34,630

Production Artist 45,242 45,549 45,162

Senior Digital Designer 65,343 62,463 66,450

Digital Designer 52,709 45,000 54,488

Digital Production Artist 43,164 41,200 44,286

Senior Copywriter 71,638 63,507 73,962

Copywriter 54,688 57,167 54,780

Entry Level Copywriter 35,103 34,000 35,471

Production Manager 59,292 49,685 62,814

Traffic Manager 48,600 39,779 51,775

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2014 NATIONAL AVERAGE SALARIES BY AGENCY SIZE

Position All Agencies

< $3 Million in Billings

$3+ Million in Billings

Project Manager $52,749 $53,622 $52,446

Controller/Business Manager 67,947 63,705 70,022

CEO 165,590 147,544 175,996

CFO 99,725 93,300 101,867

COO 129,305 73,000 140,847

Bookkeeper 44,808 32,779 45,943

Receptionist 35,314 30,127 36,249

Media Director 73,406 68,188 75,380

Media Planner/Buyer 52,222 44,033 54,328

Digital Media Strategist 58,132 54,137 59,964

Public Relations Director 78,487 74,629 81,271

Public Relations Account Executive 53,075 53,000 53,577

Research Director 85,000 60,000 97,500

IT Manager 76,735 57,500 82,654

Web Developer/Programmer 62,185 53,790 67,809

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2014 NATIONAL AVERAGE HOURLY BILLING RATES

Position Average Average High Average Low

Principal $181 $245 $117

Account Service 133 162 105

Account Planning 140 175 106

Art Direction 137 170 105

Creative/Design 136 169 104

Digital Design 129 155 104

Copywriting 130 156 103

Production 120 149 91

Project Management 122 147 97

Estimating 116 144 89

Proofreading 104 132 75

Research 132 168 95

Strategic Planning 154 201 107

Media Planning/Buying 127 163 91

Public Relations 134 167 102

Digital Strategy 140 180 101

SEO/SEM Facilitation 125 150 100

Social Media Facilitation 121 146 96

Web Content Development 133 159 108

Digital Production 124 155 93

Website Programming 129 156 102

Administrative/Clerical 89 119 58

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Position Average Average High Average Low

Principal $183 $247 $120

Account Service 133 169 97

Account Planning 143 181 106

Art Direction 135 161 109

Creative/Design 130 160 101

Digital Design 132 165 100

Copywriting 128 153 102

Production 118 146 90

Project Management 118 147 89

Estimating 114 142 87

Proofreading 105 140 71

Research 129 165 93

Strategic Planning 153 191 114

Media Planning/Buying 121 151 91

Public Relations 133 164 102

Digital Strategy 144 181 108

SEO/SEM Facilitation 124 149 99

Social Media Facilitation 123 148 97

Web Content Development 135 163 106

Digital Production 130 158 102

Website Programming 133 163 103

Administrative/Clerical 91 126 57

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2014 AVERAGE HOURLY RATES BY MARKET SIZE*

Position National Small Town/ Small City

Large City/ Major City

Principal $181 $156 $199

Account Service 133 126 141

Account Planning 140 131 149

Art Direction 137 127 146

Creative/Design 136 128 143

Digital Design 129 123 134

Copywriting 130 125 134

Production 120 119 122

Project Management 122 117 127

Estimating 116 115 119

Proofreading 104 103 107

Research 132 127 139

Strategic Planning 154 144 164

Media Planning/Buying 127 123 132

Public Relations 134 127 144

Digital Strategy 140 133 147

SEO/SEM Facilitation 125 116 134

Social Media Facilitation 121 116 128

Web Content Development 133 124 166

Digital Production 124 120 129

Website Programming 129 124 133

Administrative/Clerical 89 91 87

*Small Town/Small City (less than 500,000 area population) Large City/Major City (500,000+ area population)

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2014 AVERAGE HOURLY RATES BY AGENCY SIZE*

Position All Agencies

< $3 Million in Billings

$3+ Million in Billings

Principal $181 $155 $199

Account Service 133 125 138

Account Planning 140 130 146

Art Direction 137 132 141

Creative/Design 136 127 143

Digital Design 129 124 133

Copywriting 130 125 133

Production 120 116 123

Project Management 122 117 125

Estimating 116 116 117

Proofreading 104 104 104

Research 132 121 139

Strategic Planning 154 136 167

Media Planning/Buying 127 119 132

Public Relations 134 125 140

Digital Strategy 140 130 148

SEO/SEM Facilitation 125 120 130

Social Media Facilitation 121 119 124

Web Content Development 133 127 164

Digital Production 124 119 128

Website Programming 129 126 131

Administrative/Clerical 89 91 87

*Small Town/Small City (less than 500,000 area population) Large City/Major City (500,000+ area population)

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The Second Wind Annual Agency Survey polls more than 700 member agencies,

design studios and public relations firms to gather comparative data for

our members’ exclusive use.

Total respondents were 130; approximately 20% of the total

membership. Not all respondents supplied answers for all questions.

No figures herein supplied are intended to be taken as implied standards,

but are supplied for review and comparison.

Please call Second Wind at 610-374-9093 with any questions.